Tasmania looks set for its own AFL team after the federal government pledged an additional $240 million for a new stadium in Hobart.
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Prime Minister Anthony Albanese said it was time the island state had its own team.
"It's not the Australian Football League if it leaves off the south island, and that's what's occurred for too long," he told reporters on Saturday.
"What this project will be is a very significant project that will lift up Tasmania and lift up this most beautiful of cities here in Hobart."
But protesters opposing the stadium heckled the prime minister, arguing such a funding commitment was not justified when Tasmania had Australia's fastest growth in homelessness.
The federal funding will go towards redeveloping Hobart's waterfront on the River Derwent, from Macquarie Point to Regatta Point with a multi-purpose stadium, as well as upgrading the area's transport and ports, and building new housing.
"This is an exciting project," Mr Albanese said.
"The truth is that more should have been done over the last decade."
The announcement to build the sporting facility had been widely tipped this week, after the AFL said Tasmania's entry into the competition could only happen with the construction of the $715 million stadium.
The plan will be developed through engagement with Hobart locals, Aboriginal groups, Hobart City Council and RSL Tasmania.
The Tasmanian government will contribute $375 million along with $15 million from the AFL, while another $85 million will come from commercial land sales, according to the Hobart Mercury.
The prime minister said 4200 jobs would be created during construction plus ongoing jobs in tourism and hospitality.
The deal was confirmed by Tasmanian Premier Jeremy Rockliff shortly before he appeared with Mr Albanese in Hobart.
"As I said, I don't want to sit back in 10 years time when I'm back on the farm, thinking 'you know what, if only I drove that a bit harder we might've got that'," the premier said in a tweet on Saturday.
The AFL welcomed the federal government funding, saying in a statement a new stadium was a critical requirement for a Tasmanian club licence.
"For a club to compete and succeed on the national stage, it needs a home that enables and empowers it to compete from the start, on and off the field, and today's announcement gives a potential Tasmanian club that opportunity," AFL chief executive Gillon McLachlan said.
He said the question of a 19th licence would be answered in coming days.
The prime minister was heckled during Saturday's announcement over the rising cost of housing in Tasmania, as he said building new homes would be a central part of the broader redevelopment.
Affordable houses, including for essential workers, would be built on crown land at Regatta Point as part of the project, he said.
But the Greens said most Tasmanians did not want a "billion-dollar white elephant" when the state had the fastest growing rate of homelessness in Australia.
"Apparently both Anthony Albanese and Jeremy Rockliff think it's more important to put a roof over a billion-dollar stadium than it is to put a roof over the heads of those living in tents, cars, and on couches," the party said in a statement.
Independent MP Andrew Wilkie also opposes the new venue, saying Tasmania already had two quality stadiums suitable as bases for an AFL team.
He said the state had a housing shortage, underfunded health, aged care and education systems and crushing traffic congestion.
"But apparently the top priority is a colosseum to entertain the masses and that is unconscionable."
The Albanese government has also committed $65 million to match state government funding for upgrades to the University of Tasmania Stadium in Launceston, which will also host AFL matches.
Australian Associated Press
